Disney buys $1.5 billion stake in Epic Games, the creator of Fortnite

Disney has made a significant investment in Epic Games, purchasing a $1.5 billion stake in the company. This move signals Disney’s entrance into the world of gaming and their plans to develop a new universe that will integrate with the popular multiplayer online game Fortnite.

The new universe will feature characters from a range of Disney-owned franchises, including Disney, Pixar, Marvel, Star Wars, Avatar, and more. The announcement was made by Disney CEO Bob Iger, who expressed his excitement about the partnership. He stated that this collaboration with Epic Games will create a transformative gaming and entertainment universe that combines Disney’s beloved brands and franchises with the massive success of Fortnite.

Tim Sweeney, CEO and Founder of Epic Games, also commented on the partnership, highlighting Disney’s early belief in the potential of integrating their worlds with Fortnite. He mentioned that Disney already utilizes Unreal Engine, which is Epic Games’ game development platform, across their portfolio. Now, the two companies are working together to build a persistent, open, and interoperable ecosystem that will bring together the Disney and Fortnite communities.

While further details about the new universe are yet to be announced, including a potential release date, Disney and Epic Games have already collaborated in Fortnite in the past. This collaboration has seen the introduction of popular Marvel and Star Wars skins in the game, as well as live events like the Marvel Nexus War, which attracted an impressive 15.3 million concurrent players.

In addition to the partnership with Epic Games, Disney has also announced that they will be releasing Taylor Swift’s concert film, titled Taylor Swift: The Eras Tour (Taylor’s Version), on Disney+. The film will be available for streaming starting from 15 March and will include five additional songs, including “Cardigan” from Swift’s 2020 album Folklore, along with four songs from the acoustic section of the show. Iger expressed his excitement about bringing this electrifying concert to Disney’s audience worldwide.

These announcements came alongside the news that the Walt Disney Co. has posted stronger than expected earnings in the October-December quarter. The company’s earnings for the fiscal first quarter reached $1.91 billion, up 49% from the same period the previous year. This increase can be attributed to cost cuts and growing revenue from Disney’s theme parks business.